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HIGHLY Profitable Cleaning Jobs Are A Mixed Bag!

How in the world can I say HIGHLY profitable cleaning accounts aren’t great – period?

How could making more money on a job be anything other than good, no – great news?!

Ok, well, let me explain by asking a series of questions.

First, do you think anyone else would like to get your highly profitable accounts?

Yep, your competition is no doubt lurking close by ‘licking their chops’ and would like nothing better than to swoop in and grab your best jobs.

Second, do you think those competitors are sitting back quietly or do you think they are bombarding your best clients with sales materials and phone calls – asking to submit a cleaning bid ASAP?

Yeah, you know the answer – they’re probably falling all over themselves, lining up, asking to bid at many of your accounts, all the time.

I know many of our customers were approached every week by janitorial companies asking to bid on the cleaning.

Third, in the world we compete in today, do you think the bids come in more often on the high side or the low, often ridiculously low, side?

Yeah, if your city is anything like ours here in Ohio, bids come in offering monthly prices that are lean and mean – and that’s putting it kindly.

Finally Fourth, are your business customers feeling footloose  and fancy free, or under enormous pressure to cut costs and save money?

Ok, I’m not even going to answer this one, because you already know the answer.

So, now can you understand why I suggest highly profitable accounts are a mixed bag?

That’s right, on one hand, I love having the account and I’m certainly glad it’s profitable, but what I don’t love is the vulnerability it exposes me to in a competitive marketplace.

You don’t want to live in the ILLUSION that simply because  you deliver reliable, quality cleaning that – things couldn’t change!

No, I know better… maybe you do too.

So, what do you do?

Well, I wouldn’t go dropping all my prices by 50% on my profitable accounts anytime soon simply because I’m feeling vulnerable, but here’s what I do think…

We tried to keep our prices in the ‘upper range’ of competitive.

That’s right, we aimed to be among the higher priced bids of those considered ‘competitive’.

Now, there are exceptions to this ‘shoot for the high side of middle’ pricing strategy.

For example, if your cleaning company offers unparalleled services in either a quality or personal attention – unlike any of your competitors then by all means price accordingly.

In this, best of all cases, scenario, you can demand higher premium prices because you’re delivering a premium service recognized as superior.

However, in many cases, you can find yourself competitively bidding to land an account where the prospect knows what they want- and what they want is a reasonable price from a reputable cleaning company for what is essentially standard cleaning services.

And there’s nothing wrong with that.

To summarize, we don’t aim to be the lowest price.

Never have, never will, but that doesn’t mean we’re not aware of the realities of our marketplace.

In the end, you want everyone to win: You, your  customers and your employees!

Discover the Guru in YOU,
Dan

2 Responses to “HIGHLY Profitable Cleaning Jobs Are A Mixed Bag!”

  1. Scott says:

    Great topic Dan

    I never bid low unless it’s already a client I have who needs extra services. Bidding to me is to say how much you’re worth. If a competitor that bids for work less than $20.00 an hour, it’s a joke and there are people on Craigslist who will work for $10.00, an hour and probably not legal.

    I bid high 110% of the time but high doesn’t mean I am high, I bid on the rate of inflation, not stagflation. There are so many cleaning companies nationwide that don’t have a clue how to bid a job, they guess the work and offer trash & dash service fooling the consumer they’re the best when they have no idea what they’re doing.

    If there were mandatory janitorial licenses in all States, we could regulate cleaning companies to bid the right way and weed out the garage cleaning companies, so we can all bid on profitable accounts again.

    While I am in my 30th year in business, I never drop my quality. I work 365 days a year almost, had no vacation in 3 years, while I have plenty of cleaning clients, it’s the people that bid so low they kill the profitable competition by offering lousy service on Craigslist, Angielist, Service Magic and so on.

    Until the cleaning industry is regulated in the States, it will fix the problems of cleaning companies getting less and less profitable but for now, I walk into each prospective client as a professional, I do everything professional, I never drop my standard.

    I might add for a future discussion Dan…

    Is, there should be a video on what makes a cleaning company professional (any cleaning company, janitorial, house cleaning etc), just like any other business defines a professional. Since 110% of cleaning companies say they are professional, that is a questionable phrase to say “we’re professional”. Really, how are they professional when they is no specific license for it? That would be a great video question Dan.

  2. DLiebrecht says:

    Hi Scott, thanks for your post and for sharing your thoughts about the cleaning industry. Wishing you much success, CleanGuru LLC

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